Message From the Developer
Last updated
Last updated
Just like every humble farmer, all we hope for is a stable and sustainable farm that is secured so that we can farm in peace with our hard-earned assets. After farming in numerous farms back in April, we realised that the high yields (e.g. 100,000% APY) do not make sense but people seem to like the idea back then and eventually, the early investors can cover their deposit fees through farming as the project seems to be sustainable by drawing investors with their high yields.
However, there are too many forks for such projects and eventually, the market is too diluted and farms are no longer unique and attractive since every other farm is also offering such ridiculous APY. This is when farms start to collapse as inflation is pilling up and every investor is constantly dumping their farmed tokens as they race to cover their deposit fees. Such was the strategy that we adopted as well, but this is definitely not worth the risk to invest all your assets.
As more and more people join farms, some who understand coding actually developed their own sniping bot that allows them to enter at a cheap price during token launch and subsequently dumping these tokens a few minutes later after everyone else's transaction has gone through as shown in the chart below.
As you can see, such a 'Fair Launch' model is definitely not fair since real users will most likely get in a few minutes later, resulting in us entering a ridiculously high price that is so far away from the stated launch price. This concludes that such a launch model is not the way to go and led us to the presale model.
To incentivise users to participate in presales, many farms often offered a higher listing price so that it 'guarantees a XX% profit' upon launch. This is the exact problem! Early investors will simply dump upon listing and with everyone dumping, the price will definitely plummet.
Below is an example of a farm that engaged in such a presale method:
Visually, this will let investors into thinking that the project has been rugged since the price literally collapsed upon launch. At one glance, most investors will simply avoid such a token due to the price action it presents.
Upon monitoring up to almost 50 farms during the past 4 months, almost all of them have an unlimited supply cap that allows continuous minting of new tokens. The issue with this is the sustainability of constant minting. To be specific, it is the emission rate that plays a vital role in controlling inflation.
Inflation may not necessarily be bad, but it is essential to keep it in place so that there is a healthy price action to attract new investors.
Throughout this period, we have also seen some successful farms that do not spend an enormous amount of money on marketing campaigns. In fact, they focus on security and transparency such as engaging in audits and reviews, relying on the community to shill their project via word of mouth marketing. An example is PolyWantsACracker, whereby they focus on security audits and reviews while using the remaining funds for buybacks. Eventually, the community starts to grow as the developers have lived up to their promises of buybacks and burns.
Deposit Fees redistribution remains an issue that plagued yield farms as developers run away with deposit fees collected and are not doing their part to ensure the success of their farms. Farms could have promised to use 40% of the fees collected for buyback, but in reality, only used 5% of the fees and remain unaccountable. bYield Finance introduces a novel way of buyback that is hardcoded into our MasterChef. 40% of all fees collected are automatically sent to our Fees Processor and sent to our Buyback Contract. The Buyback Protocol will have a pool of BUSD that any farmers can use to buyback bYield Token, ensuring price stability in the long term. This way, there can be no foul play and deposit fees are fully accountable and utilised.
Finally, a token with no use will be unsuitable for investment. For our native token to stay relevant, it must be properly utilized. As such, we considered many uses but eventually determined that our native tokens should serve as the primary currency for our Speculation & Prediction website, where users can place wagers on a variety of events, ranging from token values to sporting events. This creative concept is still under development as we work to strengthen our community.
